Magic Software Enterprises (NASDAQ:MGIC) Sees Unusually-High Trading Volume After Dividend Announcement

Shares of Magic Software Enterprises Ltd. (NASDAQ:MGIC) saw unusually-high trading volume on Monday after the company announced a dividend. Approximately 60,608 shares traded hands during mid-day trading, an increase of 11% from the previous session’s volume of 54,484 shares.The stock last traded at $13.92 and had previously closed at $13.88.

The newly announced dividend which will be paid on Wednesday, May 7th. Investors of record on Tuesday, April 22nd will be issued a $0.327 dividend. This represents a yield of 4.6%. This is an increase from Magic Software Enterprises’s previous semi-annual dividend of $0.24. The ex-dividend date is Tuesday, April 22nd. Magic Software Enterprises’s dividend payout ratio is 86.67%.

Wall Street Analysts Forecast Growth

MGIC has been the subject of a number of research analyst reports. Barclays upped their price target on Magic Software Enterprises from $15.00 to $16.00 and gave the company an “overweight” rating in a report on Thursday, March 13th. William Blair cut Magic Software Enterprises from an “outperform” rating to a “market perform” rating in a research note on Wednesday, March 12th. Finally, StockNews.com upgraded Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research note on Thursday, March 13th.

Magic Software Enterprises Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.76 and a quick ratio of 1.76. The company has a 50 day moving average price of $12.73 and a 200 day moving average price of $11.93. The firm has a market cap of $682.48 million, a PE ratio of 19.86 and a beta of 1.11.

Magic Software Enterprises (NASDAQ:MGIC) last released its quarterly earnings results on Tuesday, March 11th. The software maker reported $0.24 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.01). The company had revenue of $142.58 million for the quarter, compared to analysts’ expectations of $137.00 million. Magic Software Enterprises had a return on equity of 15.42% and a net margin of 6.49%. Sell-side analysts expect that Magic Software Enterprises Ltd. will post 0.95 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Truffle Hound Capital LLC acquired a new stake in Magic Software Enterprises in the fourth quarter valued at $5,173,000. Bank of New York Mellon Corp acquired a new stake in Magic Software Enterprises in the fourth quarter valued at $1,392,000. JPMorgan Chase & Co. grew its holdings in Magic Software Enterprises by 77.4% in the third quarter. JPMorgan Chase & Co. now owns 93,166 shares of the software maker’s stock valued at $1,101,000 after purchasing an additional 40,642 shares during the last quarter. Heron Bay Capital Management acquired a new stake in Magic Software Enterprises in the fourth quarter valued at $183,000. Finally, Truist Financial Corp acquired a new stake in Magic Software Enterprises in the fourth quarter valued at $189,000. Hedge funds and other institutional investors own 24.70% of the company’s stock.

Magic Software Enterprises Company Profile

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.